Question: Please show step-by-step solutions (not just final answer) 4. The following table gives prices of bonds Bond principal Annual coupon Bond Price 100 100 100

 Please show step-by-step solutions (not just final answer) 4. The following

Please show step-by-step solutions (not just final answer)

4. The following table gives prices of bonds Bond principal Annual coupon Bond Price 100 100 100 100 Time to maturity years 1.00 2.00 3.00 4.00 0.0 6.2 7.0 8.0 98 95 101 104 a) Calculate zero rates for all maturities b) Calculate forward rates

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